Multifunction printers reshape industry

The rapid pace of technological advance is changing the face of the printer market with multifunction printers, also known as all-in-one printers coming to the fore.

Market developments, especially digital technologies, are enabling printer and facsimile makers to compete for copier and scanner sales – previously the sole domain of specialist manufacturers.

Fighting back, copier makers are developing and rolling out their own versions of multifunction machines. Sharp’s new line of multifunction fax machines featuring a 5-inch thin-film-transistor colour liquid crystal display attracted shoppers when displayed late last year. The versatile fax machine doubles as a scanner, copier, printer and cordless phone.

Developments such as the 5-inch colour TFT LCD panel allowing owners to check photos before printing has turned Sharp’s facsimile into a bestseller, said Yasuyuki Koga, of Bic Camera, the electronics discount chain.

Multifunction machines are a springboard into a new market for fax machine makers. They have seen prices fall as their technology is increasingly replaced by the astronomic growth of email.

Sharp’s traditional business rivals in the fax market were NEC and Panasonic Communications. Now, though, Sharp is competing with printer makers, such as Canon, Seiko Epson and Hewlett Packard – although HP has been supplying Sharp with printer units for its multifunction fax!

Further market changes were heralded last autumn when Vyomesh Joshi, executive vice president of HP’s imaging and personal systems group, spoke in Frankfurt and drew the industry’s attention to issues surrounding the market.

Some 80% of corporations are paying more than necessary for their copiers, he argued. As part of its strategy to become a “solutions business”, HP has released two multifunction models capable of handling colour laser printing and copying in the North American and European markets. The models are up to 30% cheaper than comparable rival products, it is said.

HP is also entering the copier market with its low-priced multifunction models. Oki Data and Seiko Epson, Japanese laser printer makers whose products are used mainly by professionals and corporate offices, are also now offering printers that double as copiers.

No doubt the printer makers’ move into the copier market is an attempt to capitalise on the higher copier market growth. The Japan Business Machine and Information System Industries Association reports domestic shipments of copiers increased 6.1% year on year to 718,000 units in 2004 and is estimated to grow 4.1% this year.

Double-digit growth in demand for colour copiers globally is likely to boost overall copier demand, while budget aware businesses are buying multi-function machines saving on printing and copying costs.

Makers of copiers are not standing back though. Canon and Ricoh have, for example, provided the specifications of their copiers to other information technology companies. They hope this will stimulate development of software for their multi-function models.

New functions have also